Gold Drops Below $1200 after Strong Weekly Gain

Gold fell on Friday, snapping a seven-day rally as the dollar steadied, but the metal still looked set to post its second straight weekly gain. Investors eyed Federal Reserve Chair Janet Yellen’s speech just before the stock market close on Friday, where she said an interest rate increase “may be warranted later this year.”

At separate events on Thursday, the presidents of the St. Louis Fed and Atlanta Fed said an adjustment away from ultra-loose monetary policy might be needed in light of the U.S. economy’s improvement since the 2007-2009 financial crisis.

Spot gold eased 0.5 percent to $1,198 an ounce. The metal jumped on Thursday to $1,219.40—its highest since March 2—in a knee-jerk reaction to the attacks in Yemen. It later pared gains to close near $1,200.

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